Database Provider MongoDB's Profit Forecast Disappoints. Its Stock Is Plunging.

2026-03-06 19:59:41

Key Takeaways

MongoDB shares tumbled after the database company gave a disappointing profit outlook.
The company’s fourth-quarter revenue and earnings topped analysts’ expectations.

MongoDB (MDB) shares plummeted after the database provider gave a disappointing profit outlook, offsetting quarterly results that exceeded expectations.

The stock was down nearly 21% to $258 in recent trading, deepening its recent decline amid a broader pullback in software stocks.

MongoDB projected current-quarter revenue of $659 million to $664 million, in line with Wall Street expectations. However, the company’s forecast of adjusted earnings per share of $1.15 to $1.19 came in slightly below the Visible Alpha consensus of $1.21.

The company reported fiscal 2026 fourth-quarter sales of $695 million, above calls for $670 million. Its adjusted EPS of $1.65 also topped consensus estimates.

Why This Matters

MongoDB’s sharp selloff could reflect skepticism and weak sentiment surrounding software stocks, and underscore how investors are heavily punishing tech companies for less-than-stellar results.

Bank of America and Wedbush analysts lowered their price targets to $400 and $380, respectively, following the results. Still, they reiterated bullish ratings on the shares, suggesting the company’s outlook could be conservative.

“We think any downside volatility would be a particularly attractive buying opportunity,” Bank of America told clients.

While ratings are still in flux, most Wall Street analysts tracked by Visible Alpha hold “buy” or equivalent ratings for the shares. The consensus target around $363 would suggest they see a rebound for the stock.

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With today’s drop, MongoDB shares have lost nearly 40% of their value so far in 2026.

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